TLDR:
- Equity funding for sustainability-focused startups decreased by 61% in H1 2024.
- Debt-based project financing saw significant investments in cleantech companies.
Those following climate change news are facing more bad news as equity funding for cleantech and sustainability startups has dropped in the first half of 2024. Despite overall declines in equity investment, large sums were invested in debt-based project financing, particularly in Sweden. Cleantech companies are turning to debt financing as they scale, indicating a maturing startup pipeline. Themes like EV charging, battery supply chain, and hydrogen energy have seen strong investment, with companies like Sila Nanotechnologies and Ascend Elements securing significant amounts. However, IPOs and M&A deals involving cleantech startups have been slow this year, with one exception being Chinese EV maker Zeekr going public. The exit climate for cleantech companies remains cold due to a decline in technology IPOs and the impact of SPACs. While big venture rounds are still happening, the hope is that the exit climate will improve next year with a pipeline of well-funded private companies ready to go public.
